Copper surpasses $13,000 amid concerns over strikes and tariffs – Commerzbank

Copper Prices Soar Amid Chilean Mine Strike and US Tariff Concerns

The price of copper has climbed past $13,000 per ton, driven by a labor strike at Chile’s Mantoverde mine and renewed worries over potential US tariffs. According to Barbara Lambrecht, a commodities analyst at Commerzbank, the combination of rising COMEX inventories and memories of previous tariff-induced price premiums is reigniting fears of copper shortages outside the United States.

Global Copper Supply Faces Pressure from US Policy Uncertainty

Copper experienced a sharp increase of over 4%, surpassing the $13,000 per ton milestone for the first time. Two main developments are fueling this rally. The first is the ongoing strike at the Mantoverde mine in Chile. Union representatives suggest the dispute could continue for more than two months, supported by strong financial reserves. Although the mine contributes less than 0.5% to worldwide copper output, the operator aims to sustain about 30% of typical production levels with a reduced workforce.

This strike is widely viewed as a sign that elevated copper prices are heightening tensions between mining companies and their employees, raising the risk of additional labor actions at other sites. The second factor is mounting anxiety over the possibility that the US may impose tariffs on refined copper. After being temporarily exempt last year, a new decision from the US government is expected by the end of June.

Previously, tariff fears led to substantial price premiums for copper on the New York COMEX compared to the London Metal Exchange (LME), with a notable spike in December. Although these premiums have eased recently, copper inventories on the COMEX continue to rise, intensifying concerns that supplies could become limited in markets outside the US.